Have you thought about what you would do if you ever needed long-term care? With at least 70% of people age 65+ needing either temporary or long-term care, this is something that should be on your radar. How would you manage the costs if you were part of that 70%?
Medicare doesn’t pay for long-term care. Medicaid does, but only for older people with low incomes and limited assets. A long-term care policy covers a lot of long-term care scenarios, but if you don’t end up needing it, you’ve paid for something you never used. You can use your own assets and income, but be aware that the average cost of one year in a nursing facility is almost $86,000. That number is expected to double in 20 years.
If you don’t currently have a long-term care policy, are you prepared to pay $86,000 every year out of your own pocket? And if you do have a long-term care insurance policy, would you regret it if you never used it? It seems like you can’t win here, but there is a solution.